Indian stocks fell two percent on Thursday as investors took profits in index heavyweights on the back of weakening global markets, dealers said. The benchmark 30-share Sensex index ended down 344.02 points at 16,854.93. Weak global markets triggered profit-taking by local investors and funds, with share prices at near 17-month highs. "The markets have run up too fast.
This correction was widely expected and should make valuations a little better," said Bhaskar Kapadia, partner at brokerage Pyramid Securities. The Sensex index has more than doubled since March. Indian markets have seen a surge in foreign capital flows, which have pushed the Sensex up nearly 75 percent so far this year and the rupee to a one-year high against the dollar.
Foreign funds have bought shares worth 15.34 billion dollars in 2009 - the second highest amount ever - after selling stocks worth 12.24 billion dollars in the same period last year, latest official figures showed. Overseas funds pumped a record 17.23 billion dollars into India in 2007.
Losers led gainers 1,877 to 864 on turnover of 46.8 billion rupees (1.02 billion dollars). India's Tata Steel, fell 18.75 rupees or 3.34 percent to 543.45 Reliance Industries, closed at 1,064.6 rupees, down over 50 percent, reflecting its new ex-bonus price and the weaker overall market.
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